redemption fee

redemption fee definition - business

redemption fee

  1. The fee charged to repurchase an asset. For example, hedge funds often levy a stiff redemption fee when an investor decides to cash in his or her shares prior to a certain date.
  2. See deferred sales charge.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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